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W.R. Berkley (WRB) Gains 21% in 6 Months: More Room to Run?
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Shares of W.R. Berkley Corporation (WRB - Free Report) have gained 21% in the past six months compared with the industry's growth of 6.7%. The Finance sector and the Zacks S&P 500 index have risen 6.4% and 5% in the said time frame, respectively.
With a market capitalization of $18.9 billion, the average volume of shares traded in the last three months was 1.32 million.
Image Source: Zacks Investment Research
The rally was largely driven by higher premiums, lower claims frequency in certain lines of business and sufficient liquidity.
This Zacks Rank #3 (Hold) insurer has a decent earnings surprise history. It surpassed earnings estimates in three of the last four quarters and missed in one, the average being 4.35%.
W.R. Berkley has a favorable VGM Score of A. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Will the Bull Run Continue?
The Zacks Consensus Estimate for WRB’s 2024 earnings has moved up nearly 0.3% in the past seven days, indicating investors’ optimism.
The Zacks Consensus Estimate for W.R. Berkley’s 2024 earnings is pegged at $5.79 per share, indicating a 20.1% increase from the year-ago reported figure on 7.3% higher revenues of $12.94 billion.
The Insurance business of W.R. Berkley is well-poised to grow, given higher premiums from other liability, short-tail lines, workers' compensation, commercial automobile and professional liability.
Higher premiums at casualty reinsurance, property reinsurance and monoline excess are likely to drive the performance of the Reinsurance & Monoline Excess segment. Underwriting income should gain from the compounding rate improvement above loss cost trends, along with growth in exposure and lower claims frequency in certain lines of business.
WRB is one of the largest commercial line property and casualty insurance providers. It has a solid balance sheet, with sufficient liquidity and robust cash flows that support growth initiatives and effective capital deployment.
Net investment income has witnessed a CAGR of 5.4% in the past eight years (2015-2022). The combination of a high-quality fixed maturity portfolio, along with solid operating cash flow, enabled the insurer to invest at higher interest rates. The metric should continue to improve as WRB also invests in alternative assets, such as private equity funds and direct real estate opportunities.
W.R. Berkley has a solid balance sheet with sufficient liquidity and strong cash flows, given its operational strength. A strong capital position enables the nation’s largest commercial line property casualty insurance provider to deploy capital via share repurchases, special dividends and dividend hikes that enhance shareholders' value.
In December 2023, the board approved a special cash dividend of 50 cents per share. This, along with two more special dividends paid out in January and October 2023, will bring the year’s total to $1.50 per share. Its dividend yield of 0.6% is higher than the industry average of 0.3%.
CNA Financial surpassed earnings estimates in three of the last four quarters and missed in one, the average being 9.24%. The stock has gained 11.4% over the past six months.
The Zacks Consensus Estimate for CNA’s 2024 earnings indicates an increase of 8.7% from the 2023 estimated figure. The expected long-term earnings growth rate is 5%.
Skyward Specialty Insurance has a solid track record of beating earnings estimates in each of the last trailing four quarters, the average being 49.81%. Over the past six months, shares of SKWD have surged 32.5%.
The Zacks Consensus Estimate for SKWD’s 2024 earnings per share is pegged at $2.43, indicating a year-over-year increase of 17.84%.
Cincinnati Financial surpassed earnings estimates in three of the last four quarters and missed in one, the average being 38.33%. Over the past six months, CINF has gained 7.6%.
The Zacks Consensus Estimate for CINF’s 2024 earnings per share is pegged at $6.05, indicating a year-over-year increase of 8.47%.
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W.R. Berkley (WRB) Gains 21% in 6 Months: More Room to Run?
Shares of W.R. Berkley Corporation (WRB - Free Report) have gained 21% in the past six months compared with the industry's growth of 6.7%. The Finance sector and the Zacks S&P 500 index have risen 6.4% and 5% in the said time frame, respectively.
With a market capitalization of $18.9 billion, the average volume of shares traded in the last three months was 1.32 million.
Image Source: Zacks Investment Research
The rally was largely driven by higher premiums, lower claims frequency in certain lines of business and sufficient liquidity.
This Zacks Rank #3 (Hold) insurer has a decent earnings surprise history. It surpassed earnings estimates in three of the last four quarters and missed in one, the average being 4.35%.
W.R. Berkley has a favorable VGM Score of A. VGM Score helps identify stocks with the most attractive value, best growth and the most promising momentum.
Will the Bull Run Continue?
The Zacks Consensus Estimate for WRB’s 2024 earnings has moved up nearly 0.3% in the past seven days, indicating investors’ optimism.
The Zacks Consensus Estimate for W.R. Berkley’s 2024 earnings is pegged at $5.79 per share, indicating a 20.1% increase from the year-ago reported figure on 7.3% higher revenues of $12.94 billion.
The Insurance business of W.R. Berkley is well-poised to grow, given higher premiums from other liability, short-tail lines, workers' compensation, commercial automobile and professional liability.
Higher premiums at casualty reinsurance, property reinsurance and monoline excess are likely to drive the performance of the Reinsurance & Monoline Excess segment. Underwriting income should gain from the compounding rate improvement above loss cost trends, along with growth in exposure and lower claims frequency in certain lines of business.
WRB is one of the largest commercial line property and casualty insurance providers. It has a solid balance sheet, with sufficient liquidity and robust cash flows that support growth initiatives and effective capital deployment.
Net investment income has witnessed a CAGR of 5.4% in the past eight years (2015-2022). The combination of a high-quality fixed maturity portfolio, along with solid operating cash flow, enabled the insurer to invest at higher interest rates. The metric should continue to improve as WRB also invests in alternative assets, such as private equity funds and direct real estate opportunities.
W.R. Berkley has a solid balance sheet with sufficient liquidity and strong cash flows, given its operational strength. A strong capital position enables the nation’s largest commercial line property casualty insurance provider to deploy capital via share repurchases, special dividends and dividend hikes that enhance shareholders' value.
In December 2023, the board approved a special cash dividend of 50 cents per share. This, along with two more special dividends paid out in January and October 2023, will bring the year’s total to $1.50 per share. Its dividend yield of 0.6% is higher than the industry average of 0.3%.
Stocks to Consider
Some better-ranked stocks from the property and casualty insurance industry are CNA Financial Corporation (CNA - Free Report) , Skyward Specialty Insurance Group, Inc. (SKWD - Free Report) and Cincinnati Financial Corporation (CINF - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CNA Financial surpassed earnings estimates in three of the last four quarters and missed in one, the average being 9.24%. The stock has gained 11.4% over the past six months.
The Zacks Consensus Estimate for CNA’s 2024 earnings indicates an increase of 8.7% from the 2023 estimated figure. The expected long-term earnings growth rate is 5%.
Skyward Specialty Insurance has a solid track record of beating earnings estimates in each of the last trailing four quarters, the average being 49.81%. Over the past six months, shares of SKWD have surged 32.5%.
The Zacks Consensus Estimate for SKWD’s 2024 earnings per share is pegged at $2.43, indicating a year-over-year increase of 17.84%.
Cincinnati Financial surpassed earnings estimates in three of the last four quarters and missed in one, the average being 38.33%. Over the past six months, CINF has gained 7.6%.
The Zacks Consensus Estimate for CINF’s 2024 earnings per share is pegged at $6.05, indicating a year-over-year increase of 8.47%.